The Giants and Yankees still have a long ways to go before they could finish off a trade that would send Hideki Matsui to the Giants, but the teams continue to talk, ESPN.com’s Jayson Stark reports.

The two sides appear to be building momentum toward a deal, according to baseball officials who have been in touch with both clubs.

One source said the Giants “really want to do this” if the teams can settle on the players. The Yankees have rejected an offer of Matsui for starter Noah Lowry. But they’ve targeted pitcher Jonathan Sanchez. And one baseball man with knowledge of the discussions said the teams would like to “build the deal around Sanchez and go from there.”

The Giants, meanwhile, have swatted away all efforts by the Yankees to obtain Tim Lincecum or Matt Cain. (Source: Insider)

I’d love to get Lincecum or Cain (bonafide number ones), but it seems like even the Giants aren’t dumb enough to trade one of them.

But, Jonathan Sanchez is still something. A Matsui for Sanchez+ swap would be welcomed. Here’s a little info on Sanchez:

Sanchez, who turned 25 in November and won’t be a FA until after 2012, is 6-2 and weighs 165 pounds. His build is similar to Edwar Ramirez. Despite his skinny body, he is able to pump some pretty good velocity.

Here is one scouting report on Sanchez:

Boasts nasty sinking heat in the low-mid-90s, plus a strong change-up. As a reliever, works well on consecutive days.

Had some command trouble as a big-league rookie. Needs to gain stamina as a starter.

Can excel in late relief or be a steady mid-rotation starter. (Source)

BP said Sanchez’ best case scenario is to be a number three starter in December of ‘06 and listed him as the third best prospect in the Giants organization. Kevin Goldstein, of BP, said he liked Sanchez, but saw him more as a reliever.

Click here to watch his four September starts. Remember, these were his first starts back from being in the bullpen all year.

I don’t know how the Yankees would use Sanchez right away. He could be a starter, but they already have six possible starters in Andy, Wang, Phil, Joba, Ian and Moose. He could be used as a reliever this year and move into the rotation in ‘09 as Andy and Moose are unlikely to return. Either way, I’m good.

Anytime the Yankees can unload a large contract who is blocked by other large contracts (Damon and Giambi) and can get a good young arm (aka the Sheff trade), I’ll be on board.